Facing a tough legislative task, arguably the Democrats' most important ally is the man Trump and Senate Republicans chose to lead the Federal Reserve.
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FILE PHOTO: IMF Managing Director Kristalina Georgieva speaks at a news conference ahead of the World Economic Forum (WEF) in Davos, Switzerland January 20, 2020. REUTERS/Denis Balibouse/File Photo
WASHINGTON (Reuters) - The head of the International Monetary Fund on Friday warned that the United States faced a possible “dangerous wave” of bankruptcies and unemployment if it did not maintain fiscal support until the coronavirus heath crisis ended.
IMF Managing Director Kristalina Georgieva told reporters the United States, the world’s biggest economy, had scope to take further action and doing so would provide positive spillover effects for the global economy.
Leading members of the Biden administration are promising a very different approach to international trade. No longer would American negotiators focus on opening markets for financial-service firms, pharmaceutical companies and other companies whose investments abroad don’t directly boost exports or jobs at home. Those making the case include President Biden’s national security adviser, Jake Sullivan, .
For decades, the U.S. stood out as the one nation that traditionally preferred its money superpower-strong. Investors flocked to it, enabling the U.S. to borrow lots of money at low interest rates. American consumers feasted on it, buying imported goodies for less. U.S. politicians touted it as evidence of the economy’s eternal dynamism. Then under former President Donald Trump’s “America First” manifesto, the so-called strong-dollar policy was shoved aside, as gains in the currency crimped U.S.